UWM (NYSE:UWMC) Shares Up 9.3% – Should You Buy?

UWM Holdings Corporation (NYSE:UWMC)’s stock price rose 9.3% during trading on Tuesday . The stock traded as high as $2.27 and last traded at $2.2950. Approximately 2,679,991 shares traded hands during mid-day trading, a decline of 86% from the average session volume of 19,425,498 shares. The stock had previously closed at $2.10.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on UWMC shares. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $5.50 price target on shares of UWM in a report on Thursday, May 7th. Stephens assumed coverage on UWM in a report on Friday, April 24th. They issued an “equal weight” rating and a $4.00 price target for the company. BTIG Research reiterated a “buy” rating and set a $4.00 price objective on shares of UWM in a report on Wednesday, June 24th. Barclays dropped their target price on shares of UWM from $6.00 to $5.00 and set an “overweight” rating on the stock in a report on Monday, April 6th. Finally, Argus raised shares of UWM to a “hold” rating in a research report on Tuesday, March 31st. Four investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $4.99.

UWM Stock Up 11.6%

The company has a market capitalization of $3.75 billion, a P/E ratio of 8.65 and a beta of 1.72. The firm’s 50 day moving average price is $2.94 and its two-hundred day moving average price is $3.99. The company has a current ratio of 1.52, a quick ratio of 1.52 and a debt-to-equity ratio of 3.13.

UWM (NYSE:UWMC) last announced its quarterly earnings data on Wednesday, May 6th. The company reported $0.09 EPS for the quarter, topping analysts’ consensus estimates of $0.06 by $0.03. UWM had a net margin of 1.92% and a return on equity of 19.01%. The business had revenue of $901.43 million for the quarter, compared to analyst estimates of $709.85 million. Equities research analysts forecast that UWM Holdings Corporation will post 0.38 EPS for the current year.

UWM Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Thursday, June 18th will be paid a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 17.1%. The ex-dividend date is Thursday, June 18th. UWM’s dividend payout ratio is currently 148.15%.

Insider Buying and Selling at UWM

In other news, CEO Ishbia Mat sold 1,003,333 shares of the firm’s stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $3.57, for a total value of $3,581,898.81. Following the completion of the transaction, the chief executive officer owned 2,995,754 shares in the company, valued at $10,694,841.78. This trade represents a 25.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 17,938,616 shares of company stock valued at $66,253,309. 80.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Dimensional Fund Advisors LP raised its position in shares of UWM by 4.4% in the fourth quarter. Dimensional Fund Advisors LP now owns 55,509 shares of the company’s stock valued at $243,000 after purchasing an additional 2,329 shares during the period. Public Employees Retirement System of Ohio grew its stake in UWM by 4.9% in the 4th quarter. Public Employees Retirement System of Ohio now owns 51,423 shares of the company’s stock valued at $225,000 after buying an additional 2,407 shares during the last quarter. Allworth Financial LP raised its holdings in UWM by 62.5% in the 4th quarter. Allworth Financial LP now owns 6,765 shares of the company’s stock valued at $30,000 after acquiring an additional 2,602 shares during the period. Choreo LLC lifted its position in UWM by 16.1% during the fourth quarter. Choreo LLC now owns 19,017 shares of the company’s stock worth $84,000 after acquiring an additional 2,637 shares during the last quarter. Finally, Fortem Financial Group LLC boosted its holdings in shares of UWM by 29.5% during the fourth quarter. Fortem Financial Group LLC now owns 16,685 shares of the company’s stock worth $73,000 after acquiring an additional 3,800 shares during the period. 53.59% of the stock is currently owned by institutional investors.

About UWM

United Wholesale Mortgage (NYSE: UWMC) is a leading mortgage lender in the United States specializing in the wholesale channel. The company partners with independent mortgage brokers, community banks and credit unions to offer a full suite of residential mortgage products. Through its network of third-party originators, United Wholesale Mortgage underwrites, funds and closes loans, allowing its partners to focus on customer acquisition and service.

The company’s product offerings include conventional fixed- and adjustable-rate mortgages, Federal Housing Administration (FHA) loans, Veterans Affairs (VA) loans, U.S.